Whilst the S&P500 (SPY) has been chopping about, Apple stock (NASDAQ:AAPL) has been comfortably grinding up. Little has got in its way as it has gained over 23%, from $147.69 to $182.13. So what’s in store for Apple as 2022 draws closer?

Current strength

SPY has been up and down as the markets became more cautious. Since the end of November, we’ve has Omicron variant concerns that initially made the markets fall. Powell was re-elected for a second term as head of the world’s most important central bank. Fears around interest rates and large tax selling from funds didn’t help the market.

Despite all of this, Apple continued showing relative strength (chart comparisons below). The price held the 20DMA for most of the past six weeks. What’s more, the market reacted well with the Fed decision in the rear window. SPY climbed 1.8% after the FOMC meeting. Apple may likely see new all-time highs today and looks set to keep moving up.

Chart provided by TradingView
Chart provided by TradingView

$200 in Q1

Apple analysts just keep getting more bullish, with Bank of America Corp. on Tuesday upgrading the iPhone maker to buy on the revenue opportunity from virtual reality products. Virtual reality is becoming a hot topic as Microsoft is in the works to implement features of this technology. They plan to combine the real world with augmented and virtual reality into their Microsoft Teams application in 2022. This could be a huge next step for Apple who will be sure to tale advantage of this trend.

5G is also a new technology that will help Apple drive sales. They currently have several iPhones and iPads that have this capability and the demand from consumers will keep growing. 5G networks are predicted to have 1.7 billion subscribers worldwide by 2025. Apple is one of the most popular names on the market for phones.

Performance

Apple has currently gained 34% year-to-date. We think it is likely to gain another 15% from current levels during the first quarter of 2021. It is approaching the $3T milestone and we don’t think this will cause any resistance. Multiple analysts have increased price targets in recent days. JP Morgan have boosted their aim for the tech giant to $210 and Morgan Stanley to $200. KeyBanc Capital Markets initiated coverage on the stock with a bullish outlook.

AlphaPicks does not own a position in AAPL. To trade shares, register here with our preferred partner, EToro.

Leave a Reply